On the Record: Charity Laws Face Changes

2. Apply private foundation, self-dealing rules to public charities
Under existing law, private foundations are subject to greater restrictions on transactions with “disqualified persons,” or insiders, than public charities. For public charities, disqualified persons are those who have substantial influence over the charity during a five-year period that ends on the date of the transaction in question and includes officers and voting members of the governing body, family members of these persons and entities in which these persons have a 35 percent or greater interest. For private foundations, disqualified persons include substantial contributors, trustees, directors, family members of these persons and, again, entities in which these persons have a 35 percent or greater interest.